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Presented by: Lana Peters. Skype: Leading VOIP Revolution & Acquisitions of Skype. Free Calls over the internet using Peer-to-Peer technology & e Bay and Microsoft acquisitions of Skype. History/Background. 1995 Vocaltec Interest in Business applications was limited
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Skype: Leading VOIP Revolution & Acquisitions of Skype Free Calls over the internet using Peer-to-Peer technology & eBay and Microsoft acquisitions of Skype
History/Background 1995 Vocaltec Interest in Business applications was limited Revenues for VoIP services less than 1% of worldwide voice market
In 2003 Niklas Zennstrom CEO & Janus Friis Founded Skype Changed the telecommunications world Unlimited free calls Superior quality Free download of Peer-to-Peer software
Enabling Technology & Business Strategies KaZaA File-sharing internet software Architectural features P2P Low cost of maintenance Easy registration of new users “word- of- mouse” Recruiting programming talent “Supermodels not needed! We want your brain!”
“State-of-the-Art” Technology Firewall bypass technology Global networks Intelligent routing Security Super simple Pocket PC software/ Mobile apps
Competitors Source: Skype: Leading the VOIP, TIM Programs at Polytechnic University
Revenues SkypeOut- value-added offering for fee based service Low cost international calls Partners Plantronics and Siemens High quality telephone equipment and computer hardware Marginal cost low
The acquisition of Skype by eBay Looking to expand their vision and opportunity eBay + PayPal + Skype = Unparalleled e-commerce and communications engine eBay bought Skype in 2005 for around $3.1 billion
Skype- New users invite new users EBay users PayPal Wallet EBay- Buyers & sellers meet PayPal wallet Skype users Skype-Enabled ecommerce PayPal- Sellers offer PayPal & buyers use PayPal EBay & Skype usage Skype Journal, this glimpse of the possible future, from the eBay Financial Analyst conference (4 May; pdf — pages 290 and 287,
eBay sells Skype In 2007 after it failed to produce hoped for synergies eBay sells Skype to investors led by private-equity firm Silver Lake Partners for 2.75 in 2009 A mere 18 months later….
The acquisition of Skype by Microsoft In May of 2011 Microsoft’s CEO Steve Ballmer buys Skype from Silver Lake Partners for $8.5 billion —the biggest in the company's 36-year history
Microsoft's Skype acquisition strategy Integrate Skype into everything from Xbox gaming consoles to its Office software for businesses Mobile-phone market (only 7.5% of the smartphone market in 2011)
Microsoft's Skype Today As of February 2013 Skype has 250 million active users What challenges might Microsoft’s Skype face in the future? Was it a smart investment?
Question #1 What was the record breaking amount that Microsoft bought Skype for? A. 2.75 billion B. 3.1 billion C. 8.5 billion
Answer: C. 8.5 billion
Question #2 What company did Niklas Zennstrom & Janus Friis start that helped them create the peer-to-peer business model for Skype? A. Napster B. KaZaA C. iTunes D. Morpheus
Answer: B. KaZaA
Question #3 Which of the following is not a way Skype earns revenue? A. Low cost international calls B. Headsets and telephone equipment C. Monthly service fees for local calls
Answer: C. Monthly service fees for local calls
The end. Thank you